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Serbia May Renew IMF Program Along With 2013 Budget, NIN Says

Serbia may agree an entirely new agreement with the International Monetary Fund only toward the end of 2012, when the government adopts next year’s budget, NIN magazine said.

Three months are neither enough to tackle the inherited budget deficit nor bring it back within 4.25 percent of GDP, NIN reported, citing Milica Bisic, an adviser on tax to the Finance Minister. The government is now considering raising taxes to increase revenue and lower the fiscal gap, which may otherwise overshoot the original full-year target of 152 billion dinars ($1.57 billion) by as much as 100 billion dinars.

The Finance Ministry may raise value added tax to 20 percent from 18 percent and capital gains tax to 15 percent from 10 percent, while also pondering higher excise duties and personal income tax, Bisic told NIN in an interview.

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